Q3 econ test 1
Which of the following IS NOT a reason the division of labor increases production?
When workers specialize, they frequently change jobs so that the work does not become boring to them
An example of opportunity cost would be if you missed four years of salary because you decided to go to four years of college instead
true
In the Circular Flow Matrix, products and resources flow between households and businesses.
true
All of the following shift the demand curve for cars to the right except:
A brand new car dealership opens in town
Who began the formal study of economics with his book "The Wealth of Nations"?
Adam Smith
Part of the reason Tom Brady makes over $20 million each year while Mr. Whicker earns $74,000 is because
All the other answers
On the Production Possibilities Frontier example above, which dot represents an inefficient use of resources?
C
On the Production Possibilities Frontier example above, which dot represents a number of goods that is impossible to produce?
D
On the graph, what does the line labeled B represent
Demand curve
If a product's price changes 25% and it quantity 40%, demand for that product is
Elastic
The Law of Demand holds that other things being equal, as the price of a good or service rises, its quantity demand also rises
False
Microeconomics
Focuses on the actions of individual agents within the economy, such as workers, households, and businesses
Macroeconomics
Focuses on the economy as a whole through the study of broad issues such as the growth of production, unemployment levels, inflation, and deficits
Who used the division of labor and assembly line production to produce automobiles that were for the first time affordable to the average American family?
Henry Ford
If Colton's income rises, what happens to his demand for airplane trips? If the income of most consumers of air travel rises (and air travel is a normal good), what will happen to the market equilibrium price P and quantity Q of this good?
Price and Quantity both rise
If the technology for making iPhones improves tremendously, what is likely to happen to the price and quantity sold?
Price falls, Quantity sold rises
If the price of materials used to make headphones rises sharply, what happens to the price and quantity sold of headphones?
Price rises, Quantity sold falls
On the graph, what does the line labeled A represent
Supply curve
The Law of Supply holds that other things being equal, as the price of a good rises, its quantity supplied will rise.
True
On the graph, what does the dot represent
equilibrium
In the Circular Flow Matrix, there are two markets: The resource market and the supermarket
false
Inelastic
insensitive to changes in price or income
Which of the curves in the photo below represents demand that is more inelastic
orange
The red dotted line represents
the price ceiling
The green dotted line represents
the price floor
If the cost of video game components falls, then
the supply curve for computers shifts to the right